VANCOUVER, British Columbia, Sept. 23, 2009 (GLOBE NEWSWIRE) -- Douglas Lake Minerals Inc. (the "Company") (OTCBB:DLKME) (Frankfurt:D60) is pleased to announce that it has signed a Frame Work Agreement (the "Agreement") with respect to its Mkuvia Alluvial Gold Project in Tanzania. The Agreement is between the Company and a trio of Chinese companies which include Guizhou Minerals Development Co. Ltd., Zhongshan Jintai Real Eastate Development Co. Ltd., and Tianjin Diying Mining Technologies and Development Co. Ltd. (collectively the "Chinese Investment Group").
The Company met with the Chinese Investment Group and discussed the matter relating to the cooperation by both parties on the Mkuvia Alluvial Gold Project. The meeting took place in Tianjin, China on June 9, 2009 and the two parties have reached the following terms which are set forth in the Agreement:
* Responsibilities of the two parties:
-- the Chinese Investment Group will be responsible for providing
capital for exploration and development of the Mkuvia Alluvial
Gold Project and will be responsible for the project operation;
-- the Company and the Chinese Investment Group will create a
joint venture company (the "JVC") registered in a mutually
agreed upon country or district;
-- the Company will be responsible for: transferring the existing
four exploration licenses and the initial 380 square kilometres
of mining licenses for the Matandini area to the JVC after the
JVC is incorporated, obtaining free use lands for the initial
mine development, obtaining necessary environmental permits for
the initial mining area, coordinating with local governments
and communities, and removing the local miners on the property.
* The equity interests of the two parties in the JVC will be as
follows:
-- when the Chinese Investment Group's capital contribution
reaches $10 million US, the Chinese Investment Group will own
70% in the JVC and the Company will own 30%;
-- when the Chinese Investment Group's capital contribution
reaches $15 million US, the Chinese Investment Group will own
75% in the JVC and the Company will own 25%;
-- when the Chinese Investment Group's capital contribution reaches
$20 million US, the Chinese Investment Group will own 80%
in the JVC and the Company will own 20%, and the equity
interest ratios of the two parties will remain unchanged.
* The JVC will be managed by a Management Committee comprising of
four persons, three appointed by the Chinese Investment Group and
one by the Company.
* Should the Chinese Investment Group decide to discontinue investing
in the JVC or withdraw from the JVC, the Company shall have the
right of first refusal to purchase the interest of the Chinese
Investment Group in the JVC. If exploration results show that the
explored properties cannot be mined economically, the Chinese
Investment Group shall have right to sell or transfer or withdraw.
For those parts of interests of the Chinese Investment Group unable to
be sold or transferred, the Chinese Investment Group will revert
back to the Company with no penalties.
* The Chinese Investment Group will contract with Management
Committee under a Management Agreement to manage each project and
guide each project through final feasibility. This will include,
but not be limited to, searching for additional business
opportunities, managing project development, including drilling,
permitting, geologic modeling, environmental consulting,
metallurgical studies, governmental relations, community relations,
tax jurisdictions, statistical analysis, corporate financial
analysis, project analysis, etc.
* Transfers of any ownership of the two parties in the JVC will be
subject to right of first refusal and/or agreement and cannot be
conducted without agreement of the other party.
* The two parties' obligations to close the transaction will be
subject to customary conditions, including, but not limited to:
-- completion of the Chinese Investment Group's due diligence on
Mkuvia Alluvial properties;
-- receipt of all necessary third party approvals including, but
not limited to, all relevant government approvals;
-- receipt of approvals for the transaction and, if applicable,
shareholders' meetings of the two parties;
A nine member delegation from the Chinese Investment Group arrived in Tanzania on September 22, 2009. They were met by the president of the Company, Mr. Charles Mnguto, and the author of the NI 43-101 Technical and Resource Report on the Mkuvia property, Mr. Laurence Stephenson of Kokanee Placer. The delegation has six representatives from Guizhou Minerals Development Co. Ltd including Mr. Xiaoxudong, Mr. Guolei, Mr. Liyongming, Mr. Liupingzhong, Mr. Fengliqun, and Mr. Panguangsong and three representatives from Tianjin Diying Mining Technologies and Development Co. Ltd. including Mr. Lizhuyun, Mr. Heshengfei, Mr. Yangchingliang.
The delegation from the Chinese Investment Group will be performing their final due diligence on the Mkuvia Alluvial Gold Project as well as conducting sites visits to the Company's Handeni and Morogoro properties during this trip. They will be accompanied by Mr. Mnguto and Mr. Stephenson, who have prepared an itinerary which allows for the proper time and resources for the delegation to complete and compile their necessary data. The delegation is scheduled to depart Tanzania on October 5, 2009.
Management is pleased with the progression of the Mkuvia Project throughout the entire process, and looks forward to a successful conclusion, culminating with the final agreement with the Chinese Investment Group.
About Douglas Lake
The Company is an emerging mineral exploration company focused on exploring and developing mining opportunities in Tanzania. For more information, go to www.douglaslakeminerals.com.
The Douglas Lake Minerals Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4345
Safe Harbour Statements
Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.
Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the "SEC") (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com). Such risks and uncertainties may include, but are not limited to, the risks and uncertainties set forth in the Company's filings with the SEC, such as the ability to obtain additional financing, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.